Nifty – Will It Reverse Post US FED Policy?

Nifty has been moving with high volatility post the US FED policy announcement

Will Nifty reverse down as per Elliott wave – Neo wave outlook?

Below are the charts of Nifty on hourly and 15 minutes time frame

Nifty hourly chart:

Nifty 15 minutes chart:

Elliott wave analysis - Nifty hourly chart shows that the entire rise in a channel and prices touched the upper end of the channel at 25600 levels. Post which there is short term profit booking.

From Neo wave perspective this is double corrective pattern and currently the fall looks to be in form of wave x.

Two stage confirmation method – As per this technique a faster retracement below 0-b trendline than wave c took to form will indicate that the overall up trend is over and downside pressure can be expected. However, over here we can see that prices have been moving down slower which increases the odds that the fall is only wave x and not a fresh leg down.

There are multiple support zone near 25280 levels and only breach of same can open targets for 25180 which is 61.8% levels. As long as same is intact we can expect range bound consolidation and post the completion of this wave x upside move should resume.

In a nutshell, Break back above 25480 will resume trend to 25570 levels or higher with 25280 as important support.

By using advanced Elliott wave concepts like Neo wave it is possible to understand the overall direction of the market and trade with the GPS.

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